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Green Technology Metals Limited (ASX: GT1) (GT1 or the Company) is pleased to advise that it has received firm commitments for a two-tranche placement of approximately 52.4 million new fully paid ordinary shares (New Shares) to new and existing institutional and sophisticated investors at an issue price of A$1.05 per New Share to raise approximately A$55 million in new equity funds (Placement)(before costs).
- Firm commitments received for two-tranche equity placement to raise A$55 million.
- Includes strategic investment of US$10M (A$14M) by major North American lithium industry proponent, Lithium Americas Corp. (TSX/NYSE:LAC).
- Placement strongly supported by a wide range of leading Australian and international institutional and sophisticated investors.
- Funds to be primarily directed towards aggressive exploration and advancement of GT1's key lithium assets in Ontario, including completion of an Integrated Feasibility Study for the flagship Seymour Lithium Mine Project.
- Non-binding Collaboration Framework established with LAC to assess a strategically located, integrated lithium chemicals business in North America.
The Placement includes a US$10 million (approx. A$14 million) strategic investment by Lithium Americas Corporation (LAC). LAC is listed on both the TSX and NYSE and has a current market capitalisation of approximately US$3.4 billion. It is currently constructing the Cauchari-Olaroz lithium brine project in Argentina with development approximately 85% complete and commissioning expected in the second half of 2022. LAC is also targeting the development of a North American lithium supply chain via development of its Thacker Pass deposit in Nevada. Thacker Pass is the largest known lithium resource in the United States and commencement of early-works construction is targeted for 2022.
Subject to GT1 shareholder approval of the second tranche issuance, LAC is set to become a 5.2% shareholder in GT1 following settlement of both tranches of the Placement. Pursuant to a placement agreement between LAC and the Company, LAC has also entered a standstill restriction with GT1 preventing it from acquiring a total shareholding in GT1 exceeding 9.99% for a period of 12 months, without prior GT1 consent.
Existing major GT1 shareholders, AMCI Australia Pty Limited (AMCI) and Primero Group Limited (Primero), committed for A$4.0 million and A$3.14 million, respectively, in the Placement. Primero and AMCI are participating solely in the second tranche of the Placement, subject to shareholder approval.
"GM team brings a strong track record of lithium exploration and resource extraction, which fits well with Lithium Americas' expertise in chemical processing. With this initial investment, we look forward to working closely with GT1 to help accelerate the development of a North American lithium supply chain."
- LAC President and CEO, Jon Evans
"We are delighted to have secured such a strong spread of new and existing investors to this transformational equity raising. The endorsement of leading lithium company, Lithium Americas, also reinforces our positive view on the prospectivity of our assets. In combination with our existing strategic delivery partners and major shareholders, Primero and AMCI, we look forward to working with LAC in executing on our aggressive project advancement and development plans over the next few years."
- GT1 Chief Executive Officer, Luke Cox
Collaboration Framework with Lithium Americas Corp.
In addition to its US$10 million placement subscription, LAC has entered into a non-binding Collaboration Framework (Framework) with GT1 to advance evaluation of a strategically located, integrated lithium chemicals business in North America.
The Framework allows for evaluation of potential cooperative aspects between the two businesses in relation to all aspects of the lithium processing and production value chain, from the processing of spodumene through to the production of battery-grade lithium chemicals.
It is set to leverage off and benefit from the considerable expertise within both businesses with respect to the production of both intermediate and final lithium products. LAC has a well-established and highly technical knowledge base within lithium chemical products and downstream lithium processing, which neatly complements the GT1 team's upstream mining and spodumene processing expertise, and the planned development pathway for its Ontario Lithium Projects.
Key guiding principles of the Framework involve both parties working together in seeking to:
- Rapidly advance the GT1 mineral assets and fast-track the Seymour Lithium Mine Project (80% GT1), Ontario, into production.
- Develop midstream and downstream processing routes for battery-grade lithium chemicals in Ontario and across North America.
- Advance development plans and project financing for an integrated lithium chemicals business.
- Source downstream offtake partners and deliver an integrated supply chain solution to customers.
- Leverage off LAC's Lithium Technical Development Center in Reno to further test and develop intermediate and final lithium products.
The Framework represents a further step in GT1 delivering to its strategy of building the pre-eminent vertically integrated lithium business in Ontario. This strategy aligns closely with the rapidly increasing attention from, and investment of, electric vehicle manufacturers in the development of an integrated North American supply chain to ensure long term, reliable supply of key battery inputs.